BMP tightens belt

BMP tightens belt
New Indian Express

BANGALORE: Senior IAS officer K Jairaj seems to be putting his World Bank experience to good use in Bangalore Mahanagara Palike (BMP).

The commissioner’s move to cut expenses on zonal works which are prone to leakage accompanied by higher provision for debt servicing may be questioned by the elected body.

But when looked in the context of the steps taken by Jairaj to increase revenue - especially property tax - the civic body appears to be heading towards more realistic growth.

The draft proposal of civic budget had set apart Rs46.49 crore for interest on loans while Rs101.37 crore was earmarked for debt servicing. These have been increased by the government to Rs 73.07 crore and Rs 187.47 crore respectively while estimated expenditure on zonal roads has come down to Rs 160.34 crore from proposed Rs 184.34 crore, expenses on zonal communication to Rs 50.33 crore from Rs 54.83 and expenses on zonal buildings to Rs 28.54 crore from Rs 48.54 crore.

Major cuts in all special grants amount to about Rs 250 crore.

Further, the commissioner has ordered re-assessment of property tax in all ranges and curb on tax evasion.

“The revenue officials have been asked to check the property tax of each property vis-à-vis the actual taxable area. Further they have been given a target to increase tax accounts,” said Additional Commissioner Gaurav Gupta.

Interestingly, the number of property tax accounts is hovering around 6 lakh for last three years despite the boom in real estate witnessed by the city.

Major reason is the lethargy and corruption in BMP revenue department - especially the field staff.